Reddit IPO & Directed Share Program: What You Need to Know

Hey Reddit community! Big news: Reddit is on its way to becoming a publicly traded entity! It’s really happening, folks!

TL;DR:

Reddit’s IPO and DSP Opportunity

  • Reddit is going public! We’re inviting our community to join in through the Directed Share Program (DSP).
  • Eligibility: U.S. residents over 18, not current/former Reddit employees.
  • Pre-register on Reddit’s DSP Page by March 5, 2024. Open to accounts created by January 1, 2024.
  • DSP offers a chance to buy Reddit shares at IPO prices, but it’s not a guaranteed spot.
  • Stay updated and safe: all legitimate information will be from official Reddit sources.

Be a part of Reddit’s new chapter by owning a share of the platform!

reddit launching ipo

Be a Part of Reddit’s IPO Journey!

Guess what? Reddit is going public, and want you, the incredible community, to be a part of this journey. Remember when you Rickrolled Rick Astley, created the legendary Mr. Splashy Pants, and gave the world r/Place? Now, it’s your turn to step up from being just users to becoming Reddit’s new (and coolest) stakeholders.

Here’s How You Can Own a Slice of Reddit

Reddit is rolling out a Directed Share Program (DSP) for eligible users and moderators. Wondering what ‘eligible’ means? We wish it could be all of you, but hey, there are some legal hoops we need to jump through. Our goal is simple: to offer every redditor the same chance to grab Reddit stocks as the big investors.

We’re trying to include as many of you as possible. However, there’s a cap on how many can join in. So, we’re doing this in phases. If you’ve been with us from the days when subreddits were just ‘reddits’, and everyone thought adding comments would be the end of Reddit (spoiler: it wasn’t), you’re first in line for an invite and the chance to pre-register.

What’s more thrilling is that you, our dedicated users and moderators, can now grab a piece of Reddit’s pie. Through our Directed Share Program (DSP), you get the same chance as big investors to own Reddit shares.

reddit direct share tiers

Reddit DSP: What You Need to Know

Eligibility for the DSP:

  1. You must be living in the U.S.
  2. Provide a valid social security or permanent resident number (don’t worry, Reddit won’t access this info).
  3. Note: Using a VPN might cause some hiccups in the application process.
  4. Be 18 or older.
  5. Share your full legal name and email.
  6. Sorry, Reddit employees (current or former), this one’s not for you.

Once pre-registration wraps up, our external DSP Administrator will reach out for more details to confirm your eligibility.

How to Get in on This

Heads up: spots in the DSP are limited. To get your name in the hat, visit Reddit’s DSP Page (desktop only) and fill out the pre-registration form. If you make the cut, we’ll email you with the next steps. And yes, there’s a waitlist if we hit full capacity. Check out our FAQ for more details.

Remember, pre-registering doesn’t mean you’re guaranteed a spot, nor does it obligate you to buy shares. This is a big decision, so make sure to read the preliminary prospectus once it’s out before diving in.

Deadlines and What’s Next

Mark your calendars: the last day to pre-register is March 5, 2024. Post-pre-registration, you’ll get an email from “[email protected]” with further instructions.

Important Stuff About the Prospectus

This offer hinges on a prospectus. Once it’s ready, you can snag a copy from big names like Morgan Stanley, Goldman Sachs, J.P. Morgan Securities, and BofA Securities. (We’ve got the contact details ready for you!)

A quick legal note: our registration statement is filed but not yet in effect. So, hold tight until we’re all set to go. We can’t accept any offers to buy or sell shares until everything’s official.

Remember, showing interest now doesn’t lock you into anything. You’re free to change your mind anytime before we go live.

FAQs

Understanding DSP

What Exactly is a DSP? A Directed Share Program (DSP) is essentially a unique opportunity offered by a company transitioning to public trading. This program allows a select group of individuals to purchase shares at the same initial public offering (IPO) price as large institutional investors. In simpler terms, it’s a chance for dedicated Reddit users to invest in Reddit at the same rate as big-time investors during our IPO.

Is There a Cost Involved in Joining the DSP? Yes, there is. If you’re selected for the DSP, you’ll have the chance to buy Reddit stock at its initial IPO price. It’s a direct investment in the company at the starting price offered to the public.

Determining the IPO Share Price The initial IPO price per share is set at the offering’s pricing stage. It’s the initial rate at which Reddit’s shares are offered to the public before they start trading on the stock market.

Timeframe for Purchasing Shares in the DSP You’ll have a specific window to purchase your shares in the DSP. Funds for the shares you plan to buy need to be in your account with our DSP Administrator before the offering’s pricing. When it’s time to confirm your shares, you can only acquire as many as your account funding allows.

Limits on Share Purchases The number of shares you can request in the DSP varies, subject to minimum and maximum limits. Your total purchasable shares depend on several factors. You can opt out at any time before confirming your order on the pricing day. On that day, you can decide to buy all, some, or none of the shares allocated to you.

Accessing the Preliminary Prospectus The preliminary prospectus for Reddit’s IPO is available on the SEC website and will also be provided by the DSP Administrator.

Eligibility Criteria for the DSP To be eligible for Reddit’s DSP, you need to:

  • Be a current U.S. resident.
  • Provide a valid social security or permanent resident number, along with other personal information (handled by the DSP Administrator, not Reddit).
  • Be at least 18 years old.
  • Provide your full legal name and email address.
  • Not be a current or former full-time Reddit employee.

Pre-registration FAQs

Deadline for Pre-registration Mark your calendar! The final date to submit your pre-registration is March 5, 2024, at 11:59 pm ET.

Rules on Multiple Pre-registrations We love your enthusiasm but let’s keep it simple – one pre-registration per person, please. Duplicate or non-serious entries will be filtered out. To confirm your submission, you can check your pre-registration status at Reddit DSP Page.

Pre-registering Without an Invite Good news! Starting March 1, 2024, invites are not needed. If your Reddit account was created on or before January 1, 2024, you’re eligible to pre-register. Should we hit our pre-registration limit, we’ll offer a waitlist option.

Waitlist and Participation Chances If you’re on the waitlist, keep your fingers crossed. We’ll offer participation opportunities to waitlisted Redditors on a first-come, first-serve basis as spots open up.

Checking Your Pre-registration Status Double-check your submission at Reddit DSP Page. If the button says “edit form” instead of “submit,” you’re all set. Remember, pre-registration doesn’t guarantee participation due to potential capacity constraints.

Updating Pre-registration Info Need to tweak your details? Simply go to Reddit DSP Page, make your edits, and hit “edit form.” This won’t affect your position in the pre-registration list, but be sure to make any changes before the deadline.

Missed the Deadline? If the deadline has passed, unfortunately, we can’t accept late submissions. It’s important to stick to the timeline.

Decoding DSP Priority Invitations

Breaking Down the Invitation Tiers Reddit’s DSP invitations are sent out in batches, categorized into distinct groups based on specific criteria. These groups are prioritized as follows:

  1. Group 1: MVPs
    • Moderators: Engaged in Reddit community programs with over 5,000 moderation actions.
    • Users: Active participants in Reddit community programs with 200,000+ karma.
  2. Group 2: Active Contributors
    • Moderators: Contributing significantly with 2,500+ to 1,000 moderation actions.
    • Users: Regular contributors with 100,000 to 50,000 karma.
  3. Group 3: Engaged Members
    • Moderators: Involved in the community with 500+ moderation actions.
    • Users: Active with at least 25,000 karma.

Additional Factors for Consideration

  • Removal of spam accounts from the eligibility pool.
  • Requirement for accounts to be in good standing.
  • Moderation actions counted from January 1, 2017, to January 1, 2024.
  • User Karma accumulation from Reddit’s inception through January 1, 2024.
  • No active status requirement for accounts.

Post the priority invitation phase, all Reddit users with accounts created on or before January 1, 2024, will be able to pre-register without needing a specific invitation.

Why Different Tiers for Invitations? The tiered invitation system is designed to be as inclusive as possible while acknowledging and rewarding those who’ve significantly contributed to Reddit’s community over time. The first phase focuses on our most dedicated users, while the second phase opens up pre-registration to the wider Reddit community.

What Qualifies as an MVP? MVP status is awarded to Reddit users and moderators who have actively participated in various community programs. This includes but is not limited to Mod Council, Reddit Partner Communities, Mod Roadshow, Mod Listening Sessions for moderators, and programs like the r/help Helper Program and Developer Platform Beta program for users.

Receiving an Invitation Outside the U.S. If you’re not a U.S. resident but received an invitation, it’s because we wanted to ensure all potentially eligible users are informed about the DSP. However, actual eligibility for participation depends on individual circumstances, including residency requirements.

DSP Troubleshooting

Encountering Errors with Pre-Registration Invites If you’re having trouble accessing the pre-registration page after receiving an invite via email or Reddit private messages, here are a couple of steps to troubleshoot:

  • Device Compatibility: Try accessing the page on a desktop computer or through your mobile web browser.
  • Account Consistency: Ensure you’re logged into the Reddit account that received the invitation. Access to the pre-registration page is restricted to the invited account and will be broadly available after March 1, 2024.

Confusion Over r/help Redirects Feeling a bit lost after being directed here from r/help for DSP pre-registration queries? Don’t worry, it’s not a scam. Due to strict legal boundaries, our hands are tied regarding what we can discuss about the DSP. This FAQ has undergone meticulous review by legal experts (yes, we’re as surprised as you are that this side note made the cut). Our protocol is to direct all DSP inquiries to this comprehensive FAQ for clarity and compliance.

Notification Timeline for DSP Participation Expect an email from “[email protected]” roughly three weeks after pre-registering. Keep an eye on your inbox for this, plus additional instructions from the DSP Administrator if you’re confirmed to participate.

Reddit’s Privacy Assurance We value your privacy. Reddit will only collect your name and email for pre-registration purposes and won’t access further personal details. Post-DSP, all such data will be erased. Our DSP Administrator will manage the more sensitive info and won’t link it to your Reddit username.

Email Address for Pre-registration Feel free to use any valid email address for DSP pre-registration. All official communication will be directed to the email you provide.

Avoiding Phishing Scams Stay alert! Legitimate information will only come from verified Reddit sources like u/reddit, “[email protected]”, or our trusted DSP Administrator.

Identifying the DSP Administrator We’ll update this FAQ with the DSP Administrator’s details once the program launches. Be cautious and only provide personal information via the secure portal we’ll provide. Always verify the source here before responding to any requests for personal info.

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